Investment management firm First Pacific Advisors recently released its Q3 2025 investor letter “FPA Queens Road Small Cap Value Fund.” A copy of the letter can be downloaded here. In the third quarter, the fund returned 7.46%, compared to 12.60% for the Russell 2000 Value Index. In the first three quarters of 2025, the Fund returned 13.77%, compared to 9.04% for the index. As the company focuses on a diligent, disciplined and patient process, it expects the fund to outperform in bear markets and underperform in speculative markets. Additionally, you can check out the fund’s top five holdings to determine your best picks for 2025.
In its Q3 2025 investor letter, the FPA Queens Road Small Cap Value Fund highlighted stocks like InterDigital, Inc. (NASDAQ: IDCC). InterDigital, Inc. (NASDAQ:IDCC) is a global research and development company focused on wireless, visual, artificial intelligence (AI) and related technologies. InterDigital, Inc. (NASDAQ:IDCC)’s monthly performance was 15.30% and its shares gained 69.03% of its value in the last 52 weeks. On November 21, 2025, shares of InterDigital, Inc. (NASDAQ:IDCC) closed at $327.63 per share, with a market capitalization of $8.454 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding InterDigital, Inc. (NASDAQ:IDCC) in its Q3 2025 investor letter:
“InterDigital, Inc. (NASDAQ:IDCC) is an R&D organization that develops and acquires video and wireless communications patents. The company has a history of strong financial performance, repurchases shares opportunistically, and pays a modest dividend. IDCC has been successfully renewing its wireless licensing agreements (Apple in 2022, Samsung in 2023) and has a growing stream of recurring licensing revenues in consumer electronics, Internet of Things (IoT) and automotive customers. 12, CEO Liren Chen joined in 2021 from Qualcom and has been hiring other former Qualcom managers. The company’s stock price has risen over the past year due to rising revenue, profitability, and buybacks. We began to trim the Fund’s position this year.”
InterDigital, Inc. (NASDAQ:IDCC) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 32 hedge fund portfolios owned InterDigital, Inc. (NASDAQ:IDCC) at the end of the second quarter, the same amount as the previous quarter. In the third quarter of 2025, InterDigital, Inc. (NASDAQ:IDCC) reported revenue of nearly $590 million, up 49% year over year. While we recognize the potential of InterDigital, Inc. (NASDAQ:IDCC) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.